Plazacorp announces 18.7% increase in FFO with its quarter end results

FREDERICTON, May 10, 2012 /CNW/ - Plazacorp Retail Properties Ltd. (TSXV: PLZ) today announced its results for the quarter ended March 31, 2012.

For the quarter ended March 31, 2012, Plazacorp reported funds from operations ("FFO") of $3.8 million, an increase of 18.7% over the same period in the prior year. FFO per share was $0.064 for the three months ended March 31, 2012 ($0.064 per share diluted), consistent with the same period in the prior year. FFO was positively impacted by growth in net property operating income, savings in one-time administrative costs incurred in 2011 and a decrease in financing costs, partly offset by the net effects of the internalization of property and corporate management. FFO per share was impacted by an 18.9% increase in the weighted average shares outstanding.

Michael Zakuta, Plazacorp's President and CEO said, "We are very pleased with the financial results for the quarter. Plazacorp has strengthened its balance sheet as our ratio of debt to asset value has decreased to 44.6%. The strong growth in FFO is a confirmation of our business strategy that is based on creating value for our shareholders by developing high quality retail projects leased to national retailers and financing these projects with long term fixed rate financing for terms of ten years or more."

Profit for the quarter ended March 31, 2012 was $14.7 million compared to $6.9 million recorded for the same period in the prior year. Profit was mainly impacted by non-cash fair value adjustments on investment properties and convertible debentures, net of deferred taxes on those amounts, as well as the same factors described above affecting FFO.

A copy of Plazacorp's quarterly report can be found on the Corporation's web site at www.plaza.ca or on SEDAR at www.sedar.com.

Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp owns interests in 116 properties comprising 5.1 million square feet of retail real estate.

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